OCC's letter 1188 just changed the game—banks can now offer loans against bitcoin collateral at 5-7% rates. Here's why this matters: somewhere between 3 to 4 million BTC are locked in taxable accounts. Holders won't liquidate and trigger 20-37% capital gains taxes, but they'll absolutely borrow at 7%.

PNC is already piloting bitcoin-backed credit lines this quarter. This creates what I call synthetic liquidity—a way to unlock value without forcing a single coin onto the open market. The tax arbitrage alone makes this irresistible for large holders. We're watching a new infrastructure take shape where bitcoin becomes functional collateral in traditional banking, all while avoiding sell pressure. The regulatory green light was the missing piece.